The Reserve Bank of India (RBI) has raised concerns over the rapid rise in unsecured lending and speculative activities in financial markets. Deputy Governor Rajeshwar Rao, speaking at a recent industry event, cautioned that excessive risk-taking could lead to financial instability.The RBI has observed a sharp increase in personal loans, credit card debt, and consumer lending, prompting fears of over-leveraging. While such loans have contributed to economic growth, experts warn that they could pose a risk if borrowers default on payments, leading to a crisis in the banking sector.In response, the central bank is considering tighter regulations on lending practices, including stricter capital requirements for banks and non-banking financial companies (NBFCs). RBI officials have also urged financial institutions to adopt responsible lending practices and conduct thorough risk assessments.Market analysts believe that while India’s economy is growing at a strong pace, excessive credit expansion without adequate safeguards could lead to long-term financial risks. The RBI’s cautionary stance is expected to influence upcoming monetary policy decisions.